The order fulfilment industry uses a wide range of jargon that can be very confusing to understand. You may be familiar with certain terms, or you may be just starting out, unsure of what all of this means.

Creating a successful ecommerce fulfilment strategy requires you to at least have a basic understanding of all these different terms.

If you have stumbled across this blog then you are likely wondering what a SKU is and what it actually means. For order fulfilment, it is important for you to understand the nature of it. We’re here to ensure you know exactly what an SKU is.

What is a SKU?

SKU: A stock keeping unit (SKU) is a unique code used by sellers to identify a specific product with specific characteristics such as the colour, size, and brand of the product. SKU codes are then printed onto product labels. SKUs are not to be confused with barcodes since barcodes require special software and equipment in order to scan them.

SKU codes can be a series of any number combination you choose since they are unique and completely subjective to your brand and products. However, it’s important to make sure that anyone handling your products understands how your SKU system works in order to avoid any errors and confusion during the pick and pack process

How Are SKU’s Used in Ecommerce?

SKUs are essential when it comes to keeping track of your inventory, both inbound and outbound. If you are working with a fulfilment centre (3PL) SKU codes are even more important.

One of the first questions you may be asked by your fulfilment provider is ‘how many SKUs do you have?’. This helps them know how much space your inventory will require and it will also give them an idea of how complicated it will be to pick, pack, and ship out your orders for you.

Some 3PL companies may offer comprehensive inventory management, which means they may also offer these SKU based services:

Now that you know what SKUs are and how to use them, it’s time to implement them across your business to make product management easier, ensuring that the growth of your business is inevitable.

TSP has a dedicated expert team that will help you with setting up, and managing your SKUs. Contact us today to find out how we can help you and your business.

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